International Ass'n of Heat & Frost Insulators & Asbestos Workers, Local Union No. 6 v. Thermo-Guard Corp.

880 F. Supp. 42, 1995 U.S. Dist. LEXIS 2880, 1995 WL 96907
CourtDistrict Court, D. Massachusetts
DecidedFebruary 24, 1995
DocketCiv. A. No. 91-11512-MLW
StatusPublished
Cited by2 cases

This text of 880 F. Supp. 42 (International Ass'n of Heat & Frost Insulators & Asbestos Workers, Local Union No. 6 v. Thermo-Guard Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Ass'n of Heat & Frost Insulators & Asbestos Workers, Local Union No. 6 v. Thermo-Guard Corp., 880 F. Supp. 42, 1995 U.S. Dist. LEXIS 2880, 1995 WL 96907 (D. Mass. 1995).

Opinion

MEMORANDUM AND ORDER

WOLF, District Judge.

Plaintiff, International Association of Heat and Frost Insulators and Asbestos Workers, Local No. 6 (the “Union”), seeks a confirmation of a labor arbitration decision awarding the Union damages for Thermo-Guard Corporation’s (the “Employer”) violation of collective bargaining agreements between the parties. Jurisdiction exists under § 301(a) of the Labor Management Relations Act of 1947 as amended (the “LMRA”), 29 U.S.C. § 185 and 28 U.S.C. § 1337.

[44]*44The Employer has counterclaimed, alleging mistaken payments, abuse of process, and malicious interference with an advantageous business relationship. The Union has moved to dismiss these counterclaims and for judgment on the pleadings. The Employer has opposed both of these motions and filed its own motion to dismiss. As set forth below, the court finds that the arbitration award should be confirmed and the Employer’s counterclaims should be dismissed.

I. PROCEDURAL BACKGROUND

The Union alleges that the Employer was subject to two collective bargaining agreements (one covering asbestos removal work and one covering asbestos insulation work) which expired on August 31, 1990. Complaint, Exhibit A, C. (“Ex_”). The asbestos removal contract was extended from an original expiration date of April 30, 1990 to August 31, 1990 by virtue of an Addendum executed by the parties on April 30, 1990. Ex. B. The Union further alleges that these contracts required the Employer to make monthly contributions to the Asbestos Workers Local 6 Health and Welfare, Pension and Annuity Funds (“Funds”). Ex. A, p. 10-11, 18; Ex. C, p. 9. The contracts incorporated by reference a Funds Delinquency Procedure by which the Employer was to pay late fees for delinquent payments. Ex. D. The Union also alleges that the contracts prohibited the Employer from subcontracting work to non-union companies. Ex. A, p. 15; Ex. B, p. 6.

Both contracts provide that disputes would be resolved by a Trade Board consisting of three members of the Boston Insulation Contractors Association and three members of the Union. Ex. A, p. 12-14; Ex. C, p. 3-5. The contracts further provide that if the Trade Board was unable to reach a decision, the dispute would be resolved by the American Arbitration Association. Id. The Union alleges that in or about November 1990, it notified the Employer of grievances pertaining to the Employer’s failure to pay late fees on delinquent Fund contributions and its subcontracting of Union work to non-Union workers. The Union also informed the Employer of its intention to request a Trade Board hearing should these disputes remain unresolved.

On March 6, 1991, the Employer received, by certified mail, notification of a hearing to be held before the Trade Board on March 14, 1991. Ex. E. The hearing was held and the Employer failed to attend. On March 14, 1991, the Trade Board unanimously found that the Employer violated the collective bargaining agreements by failing to pay the late fees for delinquent Fund payments and by sub-contracting Union work to non-Union workers. Ex. F. The Trade Board ordered the Employer to pay $31,742.00 in late fees for delinquent Fund contributions which were due for Augusb-November 1989 and March-August 1990. Id., p. 3, 5. The Employer was also ordered to pay an undetermined amount in lost wages and benefits for its use of non-Union labor. Id, p. 7-8. This amount was to be calculated by applying the hours of Union work performed by non-Union labor to the hourly Union wage and fringe benefit rate. Id. The Employer was also ordered to pay interest on this amount and to submit contributions to the various funds for each of the aggrieved workers. Id. The Employer has failed to pay this arbitration award despite receiving the Trade Board’s decision by certified mail on March 23, 1991. Ex. G. The Union subsequently filed this action on May 29, 1991 seeking to confirm the award.

II. DISCUSSION

A. Plaintiff’s Motion to Dismiss Counterclaims

The Employer alleges several counterclaims. Count I of the counterclaim alleges that no extensions were granted on either contract and that the contracts expired on April 30, 1990 and August 31, 1990. The Employer claims it erroneously made payments to the Union after these dates in the amount of $102,508.20. Despite demanding repayment, the Employer has not been re-, paid this amount. In Count II, the Employer asserts abuse of process, claiming that the Union filed an unwarranted “Notice of Contract” on January 11, 1990, making a claim against work performed by the Employer for Children’s Hospital. In addition, the Employer asserts that the Union notified Children’s Hospital of this lien and falsely [45]*45claimed that $17,000.00 was due to the Fund for work performed at the Hospital. Count III alleges malicious interference with an advantageous business relationship for the Union’s filing of the above-referenced lien and asserts that the Union “intended to induce, persuade or coerce Children’s Hospital to terminate its business relationship” with the Employer.

The Union asserts four justifications for dismissing the counterclaims: (1) the Employer has not asserted a claim against the plaintiff; (2) the Employer failed to satisfy the elements of an abuse of process claim; (3) the counterclaims are permissive and this court lacks jurisdiction; and (4) these state law counterclaims are preempted by federal law and thus are reserved for resolution by the National Labor Relations Board. For the reasons set forth below, this court finds that the counterclaims are permissive and will dismiss them based on this finding. Accordingly, it is not necessary to address the Union’s remaining arguments.

1. This Court Does Not Have Jurisdiction Over the Counterclaims Because They Are Permissive Counterclaims and There Is No Independent Basis For Asserting Jurisdiction.

The Employer’s counterclaims are not within this court’s jurisdiction because they are permissive counterclaims which do not arise out of the same transaction or occurrence which is the subject matter of the Union’s claim. A defendant must assert compulsory counterclaims when they “arise out of the transaction or occurrence that is the subject matter of the opposing party’s claim.” Fed.R.Civ.P. 13(a). Such counterclaims are within the ancillary jurisdiction of the federal courts, even if there is not an independent basis for federal jurisdiction. McCaffrey v. Rex Motor Transportation, Inc., 672 F.2d 246, 248 (1st Cir.1982), citing, Baker v. Gold Seal Liquors, 417 U.S. 467, 469 n. 1, 94 S.Ct. 2504, 2506 n. 1, 41 L.Ed.2d 243 (1974). Counterclaims which do not arise out of the same transaction or occurrence that is the subject matter of the plaintiffs claim are permissive counterclaims. Fed.R.Civ.P. 13(b).

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INTERN. ASS'N OF HEAT & FROST v. Thermo-Guard
880 F. Supp. 42 (D. Massachusetts, 1995)

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880 F. Supp. 42, 1995 U.S. Dist. LEXIS 2880, 1995 WL 96907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-assn-of-heat-frost-insulators-asbestos-workers-local-mad-1995.